The Pi Coin price is now showing signs of recovery for the first time after weeks of pressure. At first glance, the price action still seems calm, as the price has remained virtually the same over the past seven days. But beneath the surface, the capital behavior is changing – something you often see before larger movements. Money is starting to flow back in, and declines are not being sold off as aggressively.
The focus is now very specifically on one point. Pi Coin repeatedly hits the $0.21 level, and that determines both the momentum and the behavior of traders. Whether the PI price finally breaks out of this zone or remains stuck in it will likely determine the next big trend.
Capital is flowing back as dips are being absorbed.
The first signal comes from the capital inflow.
The Chaikin Money Flow (CMF) tracks whether a lot of money is flowing into or out of an asset by combining price and volume. If the CMF stays above zero, it indicates that buyers are in control.
The CMF of Pi Coin has risen above the zero line for the first time in weeks and has broken a descending trend line that previously limited buying opportunities. This is important because the last time the CMF was briefly above this trend line but then failed, Pi Coin dropped by about 32%. For a positive movement, the CMF needs to stay above both the trend line and the zero line.
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The buying behavior at dips confirms this change.
The Money Flow Index (MFI) measures buying and selling pressure by considering both price movement and trading volume. While the CMF tracks the large capital flow, the MFI looks at active buying of dips or selling during declines.
Between December 6 and 19, the Pi Coin price dropped, but the MFI increased. This divergence shows that despite the declining price, volume-weighted buying increased. Simply put: sellers are pressuring the price, but buyers quietly absorbed the supply.
If the CMF remains above zero and the MFI rises during a pullback, this usually indicates early accumulation – not distribution. This suggests that capital is quietly positioning itself, even if the price isn't really reacting yet.
Why the $0.21 Pi Coin price obsession matters.
The $0.21 level has determined the behavior of the Pi Coin price since late October. It acts as both a ceiling and a floor, continually attracting the price.
When Pi Coin broke above $0.21 on October 26, the price increased by about 42%. But when Pi Coin lost this level on December 11, the price dropped by about 11%. This history explains why the price keeps hovering around this zone and why PI traders find it so important.
As long as Pi Coin stays above $0.21, the next target is around $0.24, close to the strong 0.618 Fibonacci level. This would mean an increase of about 21% from the current level. However, if it fails to break out of this zone again, the price is likely to continue moving sideways, despite capital cautiously returning.
If it fails to reclaim $0.21 with a daily close, a drop to $0.19 or even $0.15 could follow if capital flows out again.
For now, the picture around Pi Coin is clear. Capital is returning, dips are being bought, and selling pressure has decreased. However, real recovery will only occur when the Pi Coin price definitively breaks free from the focus on $0.21. Until then, quiet accumulation can continue, but further upward movement is uncertain.
